There are many such schemes of the government which have been started to make the general public financially strong, but people do not know about these schemes.Â
If you want to save then Post Office Recurring Deposit Regular Saving is a better option. This account can be opened in any branch of the post office with an initial investment of just Rs 100.
The special thing is that there is no need to make a big lump sum investment in it. Just a certain amount has to be deposited in this scheme on a fixed date every month. At present, the interest on post office RD is 5.8% per annum. The interest is compounded on a quarterly basis . An advantage of this account is that you can also take cheap and easy loans when needed.
If you have deposited 12 installments in the RD account of the post office and your account has not been closed after being in operation for 1 year, then you are eligible to take the loan. According to the rules, you can get a loan up to 50 percent of the balance in your account.
This loan can be repaid in a lump sum or in equated monthly installments. The interest rate of loan against RD account is less as compared to personal loan of banks.
The interest rate on the loan against RD account is 2% more (interest + 2% on RD account) than the interest rate on deposits in RD account. At present, the annual interest rate on post office RD is 5.8 percent, that is, if the loan is taken, then the interest rate of the loan will be 7.8 percent.
If you are taking a loan against the RD account of the post office, then keep in mind that the calculation of interest will be done from the date of disbursement of the loan amount till the date of repayment.
The maturity period of RD is 5 years. If the loan is not repaid till the maturity period, then the loan and interest will be deducted from the maturity value of the RD account. There is no limit for opening an RD account and deposit in the post office
RD can be closed prematurely after 3 years. Also, the account can be extended for 5 years after maturity.
